legal

Governing Law

Definition

The clause specifying which state or country's laws will govern interpretation and enforcement of the contract, and typically designating a jurisdiction where disputes must be litigated or arbitrated.

For Creators

Governing law matters enormously. California's creator-protective labor laws and New York's strong commercial law differ substantially. If you're based in Texas but the contract mandates New York courts, you may face prohibitive travel costs to enforce your rights.

For Brands

Choosing a favorable jurisdiction reduces legal uncertainty. Major brands typically mandate their home state. For international deals, consider whether international arbitration (ICC, JAMS) is more practical than domestic courts.

⚠ Red Flag Warning

Watch for mandatory arbitration clauses combined with out-of-state governing law. This combination can make it economically infeasible for creators to enforce their rights, even when they clearly prevail on the merits.

Sample Contract Language

This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to its conflict of laws principles. Any dispute arising hereunder shall be resolved exclusively in the state or federal courts located in New York County, New York.

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Appears in 5 contracts

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